Business Day (20/03/2025) - As Nigeria’s Naira appears stable, analysts say local palm oil producers are expected to benefit from a bullish global crude palm oil (CPO) market in the first half of 2025.

A recent report by Cardinal Stone Research highlights a rise in global CPO supply to 79.5 million metric tons (MMt) in 2024/25, up from 76.2 MMt in 2023/24, largely driven by favorable weather conditions.

Despite this supply increase, the report noted that the growth will remain modest due to Indonesia’s biodiesel mandate and a weaker output forecast from Malaysia.

“The oil palm market this year is expected to maintain elevated CPO prices, particularly in the first half, driven by robust demand from biodiesel mandates, festive seasons, and geopolitical factors affecting some substitute oils.”

“While supply improvements may temper prices in the latter half of the year, Nigeria’s local CPO prices are expected to remain high due to rising demand and sustained foreign exchange (FX) rates” the report stated.

Nigeria remains one of the world’s largest palm oil producers, yet it still imports more than half of its domestic demand. This heavy reliance on imports makes the local market highly sensitive to currency fluctuations, as importers play a significant role in determining prices.

Read more at https://businessday.ng/companies/article/nigerias-palm-oil-sector-to-reap-from-global-market-in-h1/